Do you frequently check your credit report to ensure everything is still in order?

 

If so, you are not alone. In this article, let’s discuss the process of how to freeze your credit report so you can better decide whether you should freeze your credit or not.

One of the simplest ways to protect your credit score and prevent unauthorized activity from being reported to the bureaus is to place a credit freeze on your account.

Do you know what a credit report freeze is? 

Credit freezing was initially introduced in November 2007, and today, it has become a popular service to acquire protection against identity theft and fraud.

A credit freeze is a security feature provided by some lenders that can help customers to prevent potential creditors from accessing and using their credit history.

Is Credit Freeze the Same As Fraud Alert?

A credit freeze differs from a “fraud alert” in many ways. 

How? First, you can only request a fraud alert if you suspect you have been a victim of fraud.

Creditors that inquire about your report will get a message that your file is on fraud alert. Thus, if they receive a new credit application, the creditor will notify the credit reports owner to confirm if they have submitted a credit application to their company. 

Nonetheless, some lenders ignore the alert and approve the application without notifying the report owner.

What About a Credit Freeze?

Once you request a freeze, nobody can make new inquiries on your credit report.

If you want to apply for a credit card or a loan, you must first send a letter to the credit bureau requesting that the freeze be lifted. 

You must also specify the name of the creditor that can access your report and how long you want the lift to last.

Placing your report on freeze gives you more protection against id thieves who may try to use your personal information to commit fraud.

How to Freeze your Credit?

To freeze your credit score, contact each of the three credit bureaus – Experian, Equifax, and TransUnion – and request that they place a freeze on your credit file. 

To place a credit freeze, you must provide the following information:

• Full name
• Address
• Date of birth
• Social Security number
• and other necessary information

Once you have placed a freeze with all three credit bureaus, request that any new credit applications be sent directly to you rather than to the bureau.

How to Unfreeze your Credit?

Contact each of the three major credit reporting agencies and explain why you need the freeze lifted.

The process for unfreezing your report varies depending on the agency, so carefully read the guidelines before you begin the process.

You can select to unfreeze your credit for a set amount of time; after that, the freeze automatically resumes.

When Should You Freeze Your Credit? 

There are a few situations in which freezing your credit may be the best option.

Here are some scenarios in which you should consider freezing your credit:

• Freeze your credit as soon as you discover you have been a victim of identity theft to stop anyone from creating new accounts in your name.
• If you believe that someone has been messing with your credit score, freeze it to prevent further damage.
• You receive notification that you have been or may have been the victim of a data breach.

Why Acquire Credit Freeze

Some people feel that placing a credit report on freeze is a hassle. Furthermore, you have to freeze your credit report from all three credit bureaus in order for it to work. 

It is also not very encouraging that there is a fee associated with both requesting and lifting a freeze ($10 to $12 for each agency).

Listed below are a few factors why consumers may want to consider freezing their credit:

• Protects you from identity theft
• Protect accounts from unauthorized charges.
• It makes it difficult for thieves or unethical individuals to open new accounts in your name without proper identification.
• A credit freeze provides assurance that your credit report is safe.

But is it worth it?

Despite a few inconveniences and the fees, placing your report on credit freeze is still a worthy action. 

Unless you have plans to apply for credit cards or loans more than once a year, then spending $30 to freeze your report is definitely money worth spending.

Just think about how much money you can lose to ID theft or fraud if you leave your credit report easily accessible to the public.

Freezing your credit score is an excellent way to protect yourself against identity theft and fraud.

Remember to keep your credit report up to date to protect yourself from potential fraud.